ISP Holdings Limited — Earnings Release 2004

May 24, 2004

Listed Company Information

Listed Company Information
SYNERGIS HOLD<02340> - Results Announcement Synergis Holdings Limited announced on 24/05/2004: (stock code: 02340 ) Year end date: 31/03/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2003 from 01/04/2002 to 31/03/2004 to 31/03/2003 Note ('000 ) ('000 ) Turnover : 387,969 239,644 Profit/(Loss) from Operations : 38,757 29,137 Finance cost : (664) (1,188) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : (773) (106) Profit/(Loss) after Tax & MI : 31,611 22,683 % Change over Last Period : +39.4 % EPS/(LPS)-Basic (in dollars) : 0.111 0.095 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 31,611 22,683 Final Dividend : 3.0 cents N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 06/08/2004 to 10/08/2004bdi. Payable Date : 17/08/2004 B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Group reorganisation and basis of presentation The Company was incorporated in Bermuda on 4th August 2003. Its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 9th October 2003. Pursuant to the Group reorganisation (the "Reorganisation") in preparation for the listing of the shares of the Company on the Stock Exchange, the Company became the holding company of the companies now comprising the Group on 19th September 2003. The Reorganisation involved companies under common control and the Company and its subsidiaries resulting from the Reorganisation are regarded as a continuing group. Accordingly, the Reorganisation has been accounted for on the basis of merger accounting, under which consolidated accounts have been prepared as if the Company had been the holding company of the companies comprising the Group throughout the accounting years presented. In the current year, the Group adopted Statements of Standard Accounting Practice ("SSAP") No. 12 "Income Taxes" issued by the Hong Kong Society of Accountants which is effective for accounting periods commencing on or after 1st April 2003. The adoption of this revised SSAP has not resulted in any changes to the prior years' net assets and results. 2. Operating profit The Group's operating profit for the year ended 31st March 2004 amounted to HK$38.8 million (2003 : HK$29.1 million), an increase of 33.0% as compared with the same period last year. Operating profit is stated after crediting and charging the following: 2004 2003 HK$'000 HK$'000 Crediting Net unrealised gain on other investments 420 86 Gain on disposal of other investments 1,396 - Write back of provision for retirement benefit costs 5,228 - Charging Depreciation 2,826 2,435 Provision for retirement benefit costs - 5,228 Costs of brand-building program 4,284 - Operating lease rental on land and buildings 3,151 2,620 ============= The operating profit included the write back of retirement benefit costs of approximately HK$5.2 million which was a result of a revaluation of the underlying assets of the Hsin Chong Group retirement fund scheme (the "Fund") in which Synergis participates. As the value of the underlying assets of the Fund improved, the shortfall which was provided for in FY2002/03 reverted to a surplus. On 1st October 2003, the members of the Fund resolved to amend the rules of the Fund such that the employers have no further obligation to make good any deficit incurred by the Fund. 3. Earnings per share The calculation of basic and diluted earnings per share are based on the Group's profit attributable to shareholders of HK$31,611,000 (2003: HK$22,683,000). The basic earnings per share is based on the weighted average number of 284,362,000 (2003: 240,000,000) ordinary shares issued during the year. In determining the weighted average number of ordinary shares deemed to be in issue for year ended 31st March 2003, a total of 240,000,000 ordinary shares were deemed to be in issue since 1st April 2002 after taking into consideration of the effect of the capitalisation issue. No diluted earnings per share for the year ended 31st March 2004 is presented because there were no dilutive potential ordinary shares outstanding during the year. (2003: Nil)